DoublingStocks... A S*X Shop and A Stock Pick (open now).

Company: Teletouch Communications Inc. (TLLE.PK)
Yahoo Finance:

I've been emailing you in the last few days, about
a stock which just came onto my radar.

And I believe investing in this company at the
moment... is like being able to buy dollars for
pennies.

Here is why:

Imagine, you setup a store in the middle of your
town. Something like "BRIAN's Bits".

And for 8 years or so, you work your backside off
making this shop a success. You deliver flyers
in the area, you offer the best possible customer
service and please almost every customer.

And after those 8 years, the companies revenues
are around $60 million each year.

At this point, you're feeling quite happy with yourself
so you go to the local business consultant to ask
him to appraise the value of your business.

He takes a look over the financials, walks to the
shop and tells you he believes the business is
worth around $70 million.

But you don't decide to sell up right there, you
enjoy running the shop and adding to the community
so you continue.

A couple of years later, a rather sleazy s*x shop
is built right next door to the store. Customers
are disgusted, every time they shop there...

You're furious, but town planners have refused
to help. Regardless your shop continues to make
money, and so you continue to do business.

But once again, you go to the local business
consultant and ask him to appraise the value of
your business.

$6 million... he says!

But no matter how much you cry that the
s*x shop did not affect the revenues... the
consultant is insistent that is only worth a
fraction of its former value.

What has happened is that the business
has became massively undervalued because
of a factor that... really... doesn't actually matter.

And this is exactly what has happened to this
week's stock pick!

Let me explain...

TLLE (Teletouch Communications) was a strong
company listed on the AMEX stock exchange.
They were trading at around $7 per share, with
a market cap of over $60 million.

This stock was not a micro-cap and traded millions
of dollars per day, with the majority of holders
being institutional investors.

Although...

A couple of years ago, the company failed
to complete certain paperwork with SEC.

This led to the company (which was still very
successful) being delisted from the AMEX to
the Pink Sheet stock exchange.

And almost overnight the shares dropped from
around $7 per share to just pennies.

If you take a look at the graph of TLLE, it looks like
a rock being thrown from an extremely steep
cliff.

And this was mainly because institutional
investors, (stuffy bankers on Wall Street) do not
trade in micro-cap stocks.

So as soon as the company was delisted, they
sold out as fast as possible.

And all of this... despite the fact the company
is still successful and still throwing off bagfuls
of cash.

Don't believe me?

Let me show you...

In a recent 10-K filing, for 2007... TLLE reported
net operating revenues of $56 million.

And most of that is generated by TLLE's cellular
business... Because they have 80,000 current
subscribers.

So in order to value the business, we really
need to value this list of subscribers (because
it makes most of the money).

I've researched this myself, and the industry
standard value for each subscriber is between
$1,500 and $3,000 each.

But being extremely conservative, I'm only going
to value each of TLLE's subscribers at $760.00
each.

And $760 x 80,000 gives TLLE's subscriber list
a value of...

$61 MILLION!!!

Which is over 10x its current market capitalization (i.e.
how much you could buy the entire company for).

So even if you discount TLLE's substantial retail and
wholesale distribution businesses...

TLLE is currently trading at a market cap of less than
10x the net value of one asset.

It's like being able to buy the store in our example
for 1/10 it's true value... Just because...

Of the S*X SHOP next door!

But why do I believe TLLE is going to be
revalued?

Here's why:

I've actually been waiting around 1 month to
release this stock pick at the perfect time.

The Company is working aggressively to complete
its prior period audits and bring all of its SEC
filings current...

The recently filed 10-K providing direct evidence of
this -- paving the way for the possibility of a
NASDAQ Small-Cap listing or relisting on the
AMEX in the near future.

And so as TLLE completes its audits, and is
relisted on a better exchange... Institutional Investors
will once again start to trade TLLE.

But even this is in the medium term (A month or so
away).

The company is currently working hard to raise
its profile as an excellent buying opportunity.

Even in the past day or two the stock has started
to react... But I believe this is just the start.

So start researching TLLE yourself.